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ezkcdude
Veteran Member
 
Join Date: Jan 2005
 
2009-03-14, 12:27

It's interesting to me that the "fairtax" site/movement isn't even transparent about the tax rate.

They proclaim it's 23%. Ok, doesn't sound bad at first. But that's tax-inclusive, a way no normal person would calculate taxes.

Here's there own example: A good costs $77. The tax you would pay is actually 30%, which equals $23, bringing the total cost to $100. Now, the tax-inclusive rate is 23%, but it's completely misleading because nobody calculates tax rates that way. If I buy something that costs $100, under the "fairtax", I will be charged $30 in tax. For them to go around saying the rate is 23% is completely disingenuous and makes me distrust the entire thing.
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